Changing depreciation

This page allows you to process depreciation for the change depreciation setup. You can also process depreciation in batches through this page. You can retrieve the change setup for the deprecation book. You can specify the date on which the depreciation has to be processed. You can enter the numbering pattern based on which the process run number is generated. The system retrieves the change setup number based on the depreciation book selected.

The system generates the process run number based on the numbering type. The system updates the status of the asset / tag combination and the change setup number to “Processing”.

Select the “Process Change Depreciation” link at the bottom of the “Setup for Change Depreciation” page.

The “Change Depreciation” page appears.

The system displays the following fields in the “Asset Details” group box:

Process Run No.	A unique number identifying the depreciation process run. This number is automatically generated by the system at the time of processing or batch processing.
Status	The status of the process run. The statuses are
	Processing if the process is incomplete.
	Processed once the process is completed.

Enter the following fields:

Depreciation Book Code	Use the drop-down list box to select the code identifying the depreciation book. The system lists all the depreciation book for which the change setup number has been defined with the change setup number in “Active” status. The system displays the first depreciation book by default.
Process Date	The date on which the change depreciation has to be processed (Date Format). Mandatory.
Finance Book	Use the drop-down list box to select the code identifying the finance book in which the accounting entries are to be posted. The system lists all the finance book mapped to the login organization unit of the Finance Book Component business component to which this component has been mapped for selection. The finance book must have been defined in the “Create Finance Book” activity of the “Organization Set Up” business component. The system displays the first finance book by default on launch of the page.
Numbering Type	Use the drop-down list box to select the numbering type for the login organization unit. The numbering types must have already been defined in the “Create Numbering Class” activity of the “Document Numbering Class” business component and must be in “Active” status as on the transaction date with the transaction type change depreciation run number. The system displays the numbering type set as default for the transaction in the “Document Numbering Class” business component.
Posting Cost Center	The code identifying the cost center in which the accounting entries must be posted (Alphanumeric, 10).

The system displays the following field:

Currency

The base currency of the company.

Click the “Get Details” pushbutton to retrieve setup details.

The system displays the following fields in the “Setup Criteria” multiline:

Note: The system retrieves all the change setup defined for the selected depreciation book.

Change Setup No.	The number identifying the change setup.
Setup Description	The textual description pertaining to the change setup number.
Start Date	The start date of the first financial period.
End Date	The end date of the last financial period.
Asset Selected	The number of assets selected for depreciation processing.
Tags Selected	The number of asset tags selected for depreciation processing.
Records Selected	The total number of records selected for processing. The system displays the product of the number of financial period selected and the number of tags here.

Check the box in the “Select” column of the multiline to mark the setup number.

Click the “Process” pushbutton to process the change depreciation.

Note: Atleast one row in the multiline must be marked for processing.

The number of records selected must not exceed a limit defined in the “OU Process Parameter” business component.

If the depreciation method assigned to new depreciation rule is “Diminishing Balance”, then the in-service date of the asset must be later than the earliest financial start date.

The in-service date and the revaluation run date of an asset must be less than the period end date.

The system generates a new process run number based on the numbering type selected and updates its status to “Processed”.

The system groups the asset / tag combination according to the new depreciation rule assigned to them.

The system process depreciation for asset tag based on the new rule assigned. The system also calculates depreciation in parallel base currency. The system also calculates the maximum and minimum depreciation for an asset.

The system updates the period start date and end date as the depreciation processing start date and end date.

If In-service date is greater than period start date, then the system updates the depreciation processing start date as in-service date.
If the revaluation run date is greater than period start date, then the system updates the depreciation processing start date as revaluation run date.
If the asset tag has been transfered from a different finance book, and if the transfered date is greater than period start date, depreciation processing start date should be transfered date.
If the process upto date is less than the period end date, then depreciation processing end date must be process upto date.

Suspension dates

If the suspension has been defined for the asset / tag, the system extends the expiry date by the suspension dates.

Rate for diminishing balance method

If the method selected is diminishing balance method and the useful life is retrieved from the rule. The system calculates the rate for the asset / tag / In-service date as 1 – (salvage/cost)^(1/useful life).

Mid period convention

If the convention is mid period and if the in-service date falls within the start and end date of the period, then the mid period date is (Period End date - Period Start date + 1)/2 + Period Start Date). The system updates the depreciation start date as the mid period date. In case of revaluation depreciation processing, in-service date will be replaced by Revaluation run date.

Mid month convention

If the convention is mid month and the in-service date of the asset falls on or before the 15th of the depreciation processing period, then the depreciation will be charged on the asset for a full period. The system does not calculate any depreciation if the in-service date of the asset falls after the 15th of the depreciation processing period.

User defined convention

If the convention is user-defined, then the effective date is calculated based on the following formula = (Year End date - Year Start date + 1)* First Year convention %age + Year Start Date.

Calculation of depreciation

The system calculates the depreciation for each asset / tag and in service date as (Rate * Period * Cost * Business use %age) / 360 or 365 or 366. The system retrieves the rates if defined under the rate ID with the effective and the expiry date.

The system calculates the suspension depreciation if the suspension period has been set for an asset.

The system calculates the maximum and minimum depreciation for the period, if the maximum and minimum depreciation has been defined in the rule. If the depreciation processed is greater than the maximum depreciation for period, the assets depreciated till the maximum depreciation. If the processed depreciation is lesser than the minimum depreciation for period, minimum depreciation is charged for the asset.

Cost Center wise depreciation charge

If there are two cost center assigned to the asset tag during the processing period, the system splits the processed depreciation into the amount assigned for each of the cost center.

Click the “Batch Process” pushbutton to run the depreciation processing in bulk.

Note: If the number of documents exceeds the number specified in the “OU Process Parameter” activity, then the depreciation must be processed in batch.

If the “Allows Depreciation below Book Value” parameter is not set to “Yes”, then the cumulative depreciation must not exceed the asset tag cost.

The system generates the process run number based on the numbering type.

The system updates the status of the asset / tag combination and the change setup number to “Processing”.

To proceed, carry out the following

Select the “View Processing Status” link at the bottom of the page to view the processing status.
Select the “Confirm/Delete Process Run” link at the bottom of the page to confirm or delete the process run.
Select the “View Change Depreciation” link at the bottom of the page to view the change depreciation details.
Select the “View Change Depreciation Setup” link at the bottom of the page to view the change depreciation setup details.